Restoring Human Dignity through Social Entrepreneurship


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Bruce Springsteen















Wednesday, March 7, 2012

A Well Oiled Machine


Begin with the end in mind is the second of Stephen Coveys 7 Habits of Highly Effective People. Too bad that more folks particularly those leading mission oriented enterprises dont follow Coveys advice.

People who run really good programs get a lot of complements. One you hear quite often is that "the place runs like a well-oiled machine".  What we mean when we say that is that each of the components of the operation fit together well, that each member of the team knows their role (and knows what is NOT their role), and that everybody has a clear sense of the overall objective of the enterprise.

Several times a year I have the distinct pleasure of stepping to the front of a classroom and working with folks who are speaking to build new ventures. One of the first things we cover is the basic business model. Any easy way to see this is to think of a pizza oven. The basic ingredients are dough, tomato sauce and cheese ( add pepperoni and mushroom if you're making it for me, please).  The process is: roll out the dough, put the sauce and cheese on top, and bake. The output is pizza. Simple, easy.  From there, it's not a big jump to an automotive assembly line. After you get that in your head, you start to understand more about how a successful venture is built mostly on how you execute.

The next big leap is to move from outputs (what you make), to outcomes (what difference you make because of what you produce).  The outcomes of pizza are a full belly and a happy kid. Depending on the kind of car, outputs can range from not being late to work, to impressing your beau or neighbor, to being on the cover of QG.

Now we move to my calling, the social benefit organization. And all of the sudden this becomes rather murky. The good news is that much of the haze is unnecessary and can be cleared with some good, basic logic (why that logic is not applied more often is a subject for another day).

The interesting thing is that just about every social entrepreneur can clearly articulate the problem that intends to be solved - far more readily and with much greater passion than the typical commercial venture.  Hunger, homelessness, literacy and thousands more basic human needs are easy to see. And the short term fixes are just as easy Food, blankets, tutors you get the idea. But most folks involved in these missions dont spend a lot of time working through the mechanics of how the process flows. The social benefit organization that looks at how to deliver the service more efficiently is a rare bird indeed. Even rarer is the one that can talk about how the work makes a difference over time. But if we are to truly achieve the promise of social entrepreneurship, we need to be able to point to outcomes, just like the commercial entrepreneur.

The academics call this a program logic model (a concept adapted in part from the IT industry, which goes to show that there really is nothing new under the sun). At its most basic, its really just the notion that there is a distinct difference between giving a person a fish and teaching them how to fish (or if youre really bold how you revolutionize the fishing industry). At its most valuable and complete state, its a clear pathway from inputs to process to outputs to outcomes outcomes, by the way,  that can be used to attract investors in ways that help you actually grow the mission. And while I certainly recognize the value of a warm blanket and a hot meal, Id like to suggest that thinking more about how we can get folks to long term self-sufficiency may be a nobler endeavor.

The best news of all is that developing such a model is actually lot easier than you think. The tool is called backwards mapping (a curriculum development technique commonly used in education, brought forward to the social benefit space).  If youre getting the feeling that what Im advocating is a much more systematic approach to social benefit organizations, youre correct.  In the end, its nothing more complex than Coveys 2nd habit.  And the time to begin is right now.